In a previous post, we discussed the importance of employee engagement in the broader health of organizations. But is the actual health and wellness of employees a way to boost corporate health, defined in terms of the bottom line? Research by the RAND Corporation suggests it is the case, finding that there is an overall ROI of $1.50 on every dollar invested in a corporate wellness program. Corporate wellness programs also serve as a differentiator for an organization’s employment brand, allowing companies to stand out as the labor markets tighten and the battle for talent heightens. The wellness market, all in all, has a bright horizon. Per a study by the National Business Group on Health and Fidelity Investments, 84% of employers surveyed plan to expand their wellness programs in the next 3-5 years.
Following the Money – Trends in Wellness
As the wellness industry has evolved, the following four trends have become apparent through acquisitions and investments in the space:
“Combine and conquer.” The corporate wellness space has shown increased M&A activity as wellness companies seek synergies as a way to expand their service offerings. Consolidation will be prevalent as existing wellness providers try to break away from the pack and gain more market share.
Integration is key. Fitbit and other wearables have been the cornerstone of most corporate wellness programs. As wellness programs mature and become software and technology oriented, it is imperative that wellness applications sync with the leading fitness trackers.
“Neo-Wellness”: a more holistic approach. Physical wellness is no longer the sole focus of corporate wellness programs. Corporations have augmented their programs to address the physical, mental, emotional and financial wellness of their employees.
Wellness and engagement programs join forces. Incentive programs have been a driving force in employee participation. Wellness and engagement programs are teaming up to get more employees to partake in employee wellness.
In the not-so-far future, we believe that the leading wellness software platforms will seek providers with a fresh take on wellness and include innovations in physical, mental, financial and emotional health. We believe that of the four main areas, financial wellness will be the most significant addition to corporate programs. With plenty of room for innovation, corporations are looking for more engaging ways to facilitate overall health and addressing the overall wellness of employees from a physical, mental and financial perspective. We see wellness as just another avenue in which employee productivity and engagement are causing many aspects of human capital management to converge.
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This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.
Do Workplace Wellness Programs Save Employers Money? RAND Corporation, 2014, available at https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Documents/RAND_RB9744.pdf (last visited September 19, 2016).
Moving from Wellness to Wellbeing: Seventh Annual Employer-Sponsored Health and Wellbeing Survey, Fidelity Benefits Consulting and National Business Group on Health, available athttps://www.businessgrouphealth.org/pub/2f92b5e0-782b-cb6e-2763-120b58381f84 (last visited September 19, 2016).